TN 10 (11-91)
RS 02001.655 Scope of Agreement - U.S. Austrian Agreement
A. POLICY - UNITED STATES
For the United States, the agreement applies only to RSDI coverage and Social Security taxes under the RSDHI program (i.e., FICA taxes for employment and SECA taxes for self-employment, including the Medicare portion). Thus, if an individual is exempt from U.S. Social Security coverage under this agreement, neither the employee or employer share of the FICA tax nor the SECA tax, in the case of a self-employed person, has to be paid.
B. POLICY - AUSTRIA
For Austria, the agreement applies to social security coverage and taxes that finance retirement, survivors and disability benefits and to the taxes that finance Austrian sickness and accident insurance. Consequently, if an individual is exempt from Austrian social security coverage as a result of the agreement, no contributions are due under these programs. However, contributions may still have to be paid for other types of Austrian benefits such as unemployment and children's allowances.